2014

Market Institutions Bring Tolerance, Especially Where There Is Social Trust

Reprint No. 2014:51

Author(s): Niclas Berggren and Therese NilssonYear: 2014 Title: Applied Economics Letters Volume (No.): 21 (17) Pages: 1234–1237
Online article (restrictions may apply)


Tolerant societies seem to function better than nontolerant societies both economically and socially. This makes it worthwhile to identify ways to stimulate tolerance. While previous research indicates that market-oriented formal institutions and policies offer such stimulus, it does not investigate what role cultural factors, like social trust, plays. We find that trust is a catalyst: The more there is, the more positive the effect of economic freedom on tolerance. Formal institutions hence interact with the culture of a society and work better as generators of tolerance in alignment with trust.


Reference:
Berggren, Niclas and Therese Nilsson (2014), "Market Institutions Bring Tolerance, Especially Where There Is Social Trust". Applied Economics Letters 21(17), 1234–1237.

Niclas Berggren

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niclas.berggren@ifn.se

Therese Nilsson

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Mob: +46 73 396 7919
therese.nilsson@nek.l...

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Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

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